Question: Date Wireless has the following assets: Current assets: Temporary Permanent Capital assets $1,000,000 1,000,000 7,000,000 Total assets $9,000,000 its operating profit (EBIT) is expected to

 Date Wireless has the following assets: Current assets: Temporary Permanent Capital
assets $1,000,000 1,000,000 7,000,000 Total assets $9,000,000 its operating profit (EBIT) is

Date Wireless has the following assets: Current assets: Temporary Permanent Capital assets $1,000,000 1,000,000 7,000,000 Total assets $9,000,000 its operating profit (EBIT) is expected to be $1.0 million. Its tax rate is 40 percent. Shares are valued at $25. Capital structure is either short-term financing at 6 percent or equity. There is no long-term debt. (Round the final answers to 2 decimal places.) a. Calculate expected earnings per share (EPS) If the firm is perfectly hedged. $ b. Calculate expected EPS if it has a capital structure of 40% debt. EPS 160 EPS c. Recalculate a and bif short-term rates go to 11 percent EPS Hedged Capital structure Mo's Delicious Burgers inc sells food to university cafeterias for $15 a box. The fixed costs of this operation are $80,000, while the variable cost per box is $10. a. What is the break-even point in boxes? (Do not round intermediate calculations.) Break-even point boxes b. Calculate the profit or loss on 15,000 boxes and 30,000 boxes. (Input all answers as positive values. Do not round intermediate calculations.) Profit/Loss Amount 15,000 Click to select) 30,000 Click to select Boxes $ C-1. What is the DOL at 20,000 boxes and 30,000 boxes? (Round the final answers to 2 decimal places.) Boxes DOL 20,000 30,000 c-2. Not available in Connect d. If the firm has an annual interest payment of $10,000, calculate the DFL at both 20,000 and 30,000 boxes. (Round the final answers to 2 decimal places.) DFL Boxes 20,000 30,000

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